FHA mortgage lenders require FHA appraisals to be performed only by FHA licensed appraiser listed on the FHA roster. Obtain an “as-is” appraisal and the appraisal must be HUD REO Appraisal and Property Requirements marked as “Insurable”. HU D’s Foreclosure REO appraisal may be available at no charge. If the original HUD REO appraisal is available, a new appraisal may not be ordered when the sales price exceeds the “”as-is'”‘ value specified on the M&M’s appraisal. If the M&M Contractor’s appraisal is more than 120 days old, the lender may order an updated “as-is” appraisal. The original appraisal must be used if a valid
sales contract was executed prior to the expiration date of the appraisal. A second appraisal may only be ordered under the following circumstances: if the current HUD REO appraisal has expired, if there are material deficiencies with the current appraisal as determined by the DE Underwriter, or the original HUD REO appraisal is not made available by the M&M Contractor. Refer to HUD REO appraisal requirements listed below. Note: The case# on the HUD M&M appraisal should not be changed if the original HUD REO appraisal was
HUD REO FHA Mortgage Lenders Appraisal
An “as-is” appraisal is required with a statement of insurability. The statement of insurability on the appraisal must be marked as Requirements – If Original “insurable”. The Property Condition Report (PCR) must be provided to the appraiser prior to inspection. In addition, the Listing History HUD REO Appraisal is not must be included in the file with the original list price. The property listing may be located at: www.HUD.GOV/hudhomes. If the listing Available history is not present, the M&M Contractor may provide. The sales contract must indicate standard FHA financing.
Note: If the statement of insurability is marked “insurable with repairs”, the file must be converted to the HUD REO Repair Escrow program. Refer to HUD REO Repair Escrow matrix for additional guidance.